|
Middle Tennessee | It's a good post, wisdom from which I can benefit. One challenge I've had is that, with minis, especially wheat minis, using stops is perilous because of the liquidity and the book algorithm. The NG minis have good liquidity I'm realizing, I should have put it in. Also, in some ways, risk is a relative thing, at least risk tolerance. In depressed markets I think there is a time--for those who have the tolerance--to continue to build into long positions with no stop, and add to them. On the short side, I dunno that's gonna work, but I can easily see someone out there saying, I'm gonna buy wheat at every dime below $4.70, or NG at every dime below $2.50. But there shouldn't be any surprises, no morning when a trader asks "What have I gotten myself into?" We need to know going in when we're getting out. But I can see a set of rare circumstances where stops aren't necessary. Goldman Sachs thinks crude is going to $20, if that happens, I can see someone saying, I'm gonna buy it, with no stop...Of course something like that is rare, and you're right, any of us speculating in these markets should or must have a defined risk. | |
|
Sorry Coolhand and Young Gun
